Intel today announced plans to invest $20 billion to construct two new semiconductor chip factories in Ohio as the United States continues to grapple with a shortage of critical electronic components.
The new Intel manufacturing hub will sit on a 1,000-acre plot of land in Licking County near Columbus, Ohio and is expected to be operational by 2025. Intel also has the option of expanding the site to 2,000 acres and building up to eight chip factories in the region.
Intel CEO Pat Gelsinger said this week’s announcement “marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership.”
“Intel’s actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come,” Gelsinger said.
1,000 acre Intel site as it sits today
Intel said the $20 billion commitment is “the largest single private-sector investment in Ohio history.” The chip plants will create roughly 3,000 Intel jobs and 7,000 construction jobs over the course of the build, and will also support “tens of thousands of additional local long-term jobs across a broad ecosystem of suppliers and partners.”
While it’s currently not clear if the Intel plant will directly serve the automotive industry, the plant should help free up the supply chain backlog of semiconductor chips once it’s operational. Construction on the site is expected to begin in 2022 and will be complete in 2025.
The Ohio site is the first new manufacturing site constructed by Intel in more than 40 years. The manufacturing hub will also attract other suppliers and contractors to the region, with Air Products, Applied Materials, LAM Research and Ultra Clean Technology indicating they will also establish a physical presence in the region to support the buildout of the new Intel site.
Keyvan Esfarjani, Intel senior vice president of Manufacturing, Supply Chain and Operations, likened the construction of a large new chip fab such as this to building a small town or city.
“A semiconductor factory is not like other factories,” Esfarjani said. “Building this semiconductor mega-site is akin to building a small city, which brings forth a vibrant community of supporting services and suppliers. Ohio is an ideal location for Intel’s U.S. expansion because of its access to top talent, robust existing infrastructure, and long history as a manufacturing powerhouse.”
Gelsinger appeared at the White House on Friday alongside President Joe Biden to announce the major $20 billion investment.
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Comments
Big deal for Ohio.
Ohio Intel Inside!
Good news indeed.
About time.
I’ll expect chip prices to crater in about 3-5 years with all this new supply coming online. Boom and bust industry. Article did something I’ve not seen much of and kudos to them. The semi biz is highly dependent on companies like Air to provide very very high purity chemicals used during manufacturing. You don’t make products the size of atoms without unbelievably pure components. And FinFets are a few atoms in size.
Trump gave Ohio Lordstown Motors.
Biden gives it a $20B microchip facility.
Wonder which way it will vote in 2024.
What? Where did it say that Biden gave $20B to open this Factory, wtf are you on I need to get some too… Intel itself is spending this $20B LOL
You are already on it, anyone praising the Silverado ev as a good looking vehicle and not acknowledging it for what it is a fake avalanche is already getting high. You should leave that stuff alone and go to rehab.
Gotta be honest with ya, I am all for EV’s but not 100%, ICE should still exist but maybe limited in a yearly quantity and that is the case for a good amount of time. But also I NEED the stuff THEY are on, mine aren’t giving me the same effect.
I’m not a Trump fan, but your a fool!
Can anyone find proof that Biden knows what a computer chip is or what it does?
Come on man the thing you eat you know a chip
More like Gov Mike Dewine got the plant in Ohio.
The jobs go to the Red states not the Blue.
The red states have more uneducated people willing to work in factories.
Proof? A link would Suffice.
President Biden had absolutely nothing to do with this deal; neither was President Trump, i suspect.
Better late than never? Too bad they are going over 1000 acres of what looks like pastures. Oh well.
Like they say Build It and we’ll buy it. or build it and the auto industry will come.
Red states get the job opportunities because an intelligent workforce exists, Smart people vote smart ! USA, USA, USA
Meanwhile they shut down fabs in NYS that already had the infrastructure. And please dont tell me NYS is too expensive as thats only half the story with all the incentives that Ohio like NYS would have given out to keep/build new. Unbelievable. How much Federal tax payer support is going to cost us? Meanwhile those execs walk away with lush pay, benefits and parachutes. Think big name tech that are now relegated to 2ndary service providers…yep that company.